The Board of Executive Directors of
the World Bank has approved $200m (about N39.4bn) credit to Lagos State
to support a range of reforms relating to fiscal sustainability, budget
planning, budget execution and the investment climate in the state.
A statement issued by the bank on
Wednesday said the facility would help sustain the state’s recent
economic growth and poverty reduction, while helping it to continue to
deliver social services to the expanding population.
The credit from the International
Development Association segment of the World Bank Group supports the
Third Lagos State Development Policy Operation and is the last of a
series of two development policy operations, which aim to improve public
finances and the investment climate in a fiscally sustainable manner.
In
the past decade, Lagos State achieved significant economic growth,
improved its infrastructure and services, significantly reduced crime,
and brought millions of people out of poverty, the bank said.
The World Bank Task Team Leader for the
project, Jariya Hoffman, said with enhanced budget transparency and
efficiency, adequate funding could be shifted to programmes to benefit
the state’s booming population, especially the poorest families.
“The operation’s focus on furthering
improvements in the transparency of the budget system, effectiveness of
public expenditures, and the business climate will help sustain the pace
of economic growth and thus the state’s positive momentum towards
income equality and the delivery of public services,” he said.
The World Bank Country Director for
Nigeria, Marie-Francoise Marie-Nelly, said, “This operation is designed
to assist Lagos State in its quest to continue its recent success in
spite of the challenges brought on by rapid economic and population
growth.
“As an urban agglomeration that has
reduced income inequality during double digit economic growth, Lagos is
an example of inclusive growth in Nigeria. If the Lagos experience is
sustained, there is strong potential for this type of inclusive growth
to spread to other parts of Nigeria.”
According to the bank, the operation
will enhance the state government’s fiscal sustainability by anchoring
the budget on a framework that accounts for key fiscal risks and
improves revenue collection. Support for adopting a new approach to
budget planning and preparation will ensure adequate allocation of
budgetary resources to social services such as education and health.
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